Suppose Total Expenditures for a Typical Household in 2002 Were

question 85

Multiple Choice

Suppose total expenditures for a typical household in 2002 were $2,500 per month,while the cost of purchasing exactly the same items in 2012 was $3,000.If 2002 is the base year,the consumer price index (CPI) for the year 2012 equals

• A) 83.
• B) 100.
• C) 120.
• D) 125.
• E) 130.

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Definitions:

Allowance Account

An account used to offset the total amount of accounts receivable due to the likelihood that some accounts will not be collected.

Bad Debts Expense

An expense account that represents the cost of credit sales that are considered to be uncollectible, reducing net income on the income statement.

POSSLQs

An acronym standing for "Persons of Opposite Sex Sharing Living Quarters," used to describe cohabitating couples who are not married.

Persons

Human beings individually considered, often in relation to their social or legal status.